Article

2008-06-18 Home Front Economy

Royal Bank of Scotland issues global stock and credit crash alert

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Anonymoose 2008-06-18 09:10|| || Front Page|| [3 views ] Top

#1 Buy gold!!!!!!!

/oh dear.

Posted by trailing wife">trailing wife 2008-06-18 10:04|| 2008-06-18 10:04|| Front Page Top

#2 Gold has all the real value of lead, except it's prettier.

Posted by Anonymoose 2008-06-18 10:17|| 2008-06-18 10:17|| Front Page Top

#3 The Royal Bank of Scotland is one of those firms that are into everything, but you never hear about them. They are a HUGE, extremely well-run, low-key outfit. These guys own a good chunk of the Bank of China, too, and were the first to offer private banking in that country.

When they speak, I listen.

Posted by Mullah Richard 2008-06-18 10:18|| 2008-06-18 10:18|| Front Page Top

#4 if we are really shifting to an inflationary surge, gold definitely has a place as a hedge. Though im not sure to what degree the price already reflects that.

Posted by liberalhawk 2008-06-18 12:20|| 2008-06-18 12:20|| Front Page Top

#5 Biflation/Stagdeflation you mean?

Inflation in imports, deflation in debt bought items.

Posted by Bright Pebbles 2008-06-18 12:47|| 2008-06-18 12:47|| Front Page Top

#6 At some point soon, social security starts to pay out more than it is taking in. At that point it must reach into its "trust fund" of IOUs from Congress for repayment of money that was spent long ago to finance budget deficits. Congress must pay or Social Security defaults. Where does Congress get the money?

There is just one of the many scenarios that is facing us in the coming decade.

Posted by crosspatch 2008-06-18 16:43|| 2008-06-18 16:43|| Front Page Top

#7 Even worse than SS is the almost completely unfunded Medicare liability. It runs to the tune on $30 trillion (yes that's a T). Even seizing the Middle East oil fields won't cover it. I think the funds flow already went negative last year. When most of us retire we're gonna have to do without government funded Vi@gra and just about everything else.

Posted by ed 2008-06-18 17:13|| 2008-06-18 17:13|| Front Page Top

#8 Crosspatch: I suspect that what will happen is the economic equivalent to 9-11. The central banks will be pretty powerless to stop it. Credit will essentially cease to be at all levels.

The government that will succeed will be the one that maintains a strong economic floor for the public. This was the one part of the Frank Roosevelt administration that is still regarded well, despite the utter crap policies that was the rest of his economic plan.

Back then, the Republicans made the terrible mistake of advocating laissez-faire, which is NOT something to advocate when people are homeless and hungry. They will, and did, vote with their stomachs.

Ironically, the lesson that the Democrats of today got out of it was wrong as well, that profligate spending is the way out of all economic problems. The trouble is, profligate spending is the very reason for this current situation.

So the winner in the contest will keep people in homes and apartments and keep them fed. Their efforts to rebuild the economy have to start at this point.

The next step that will *have* to be taken is to end credit, as such. This might be with the practice of balanced budgeting, if not an amendment, with slashing of the federal government to what can be supported with taxes.

That would be about 50%. Most of it by eliminating direct payments to individuals and entitlements. That means semi-socialism for a while, with housing, food, and health care provided to the poor directly from the government.

And once you are no longer poor, you are out of the system for good and pay your own way. Thus the end of socialism for good.

Posted by Anonymoose 2008-06-18 17:26|| 2008-06-18 17:26|| Front Page Top

#9 And once you are no longer poor, you are out of the system for good and pay your own way. Thus the end of socialism for good.

Yeah. That will mean "socialism by other means," a.k.a. theft/robbery by the same class of individuals you saw acting so admirably in Katrina's wake. Buy guns and ammo while they're still available. You may be VERY glad you did.

Posted by Thaimble Scourge of the Pixies4707 2008-06-18 18:34|| 2008-06-18 18:34|| Front Page Top

#10 And taxpayers are still paying for hotels and meals for Katrina ticks. The only way to get some people off the taxpayer's teat is to make it more painful than it would be to become self sufficient.

Posted by ed 2008-06-18 18:38|| 2008-06-18 18:38|| Front Page Top

#11 The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.

Yeah, I see a credit crunch when an adult shows up and demands a call on margin for the speculators on the oil market. It's going to be the delayed crunch the the Fed funded by trying to bail out the same people who played 'Monopoly' with real property in the housing market. When the call comes, a lot of those who've been the cause of this pain will be exposed. Hopefully this time a big chunk of the good o'boy network will go down hard.

Posted by Procopius2k 2008-06-18 19:36|| 2008-06-18 19:36|| Front Page Top

23:59 JosephMendiola
23:31 rammer
23:29 crazyhorse
23:11 crazyhorse
23:10 Nero Thomose7193
23:05 Old Patriot
22:53 JohnQC
22:48 JohnQC
22:38 Frank G
22:36 JohnQC
22:35 Frank G
22:28 JohnQC
22:23 Abdominal Snowman
22:18 RD
22:15 Biff Wellington
22:00 Procopius2k
21:57 Procopius2k
21:54 OldSpook
21:44 JohnQC
21:44 Nimble Spemble
21:40 OldSpook
21:38 AlmostAnonymous5839
21:10 Besoeker
21:05 Besoeker